Oil ministry today gave the three companies a go-ahead to raise petrol prices by 3 Rs/ Ltr after international crude oil prices touched USD 90 per barrel. BPCL, the second largest fuel retailer in the country, took the lead to raise petrol prices by Rs 2.96 a litre to Rs 55.87 per litre in Delhi, sources privy to the decision said. Indian Oil Corp (IOC), the largest fuel retailer in the country, and Hindustan Petroleum Corp (HPCL) will do the same by an equal measure tomorrow, sources said.
State-run oil companies are taking turns to increase prices so that they are not accused of acting as a cartel in revising price of a commodity which had been freed from government control. Sources added that the three are losing about Rs 4.17 per litre on selling petrol below import cost. Sources said a Rs 2 per litre hike in diesel prices is on the agenda of an Empowered Group of Minister headed by Finance Minister Pranab Mukherjee when it meets on December 22.